EU Flags China’s $6 Billion Morocco Buildout as 45% EV Tariffs Face Circumvention Risk
Updated
Updated · Financial Times · May 31
EU Flags China’s $6 Billion Morocco Buildout as 45% EV Tariffs Face Circumvention Risk
5 articles · Updated · Financial Times · May 31
$6 billion in announced Chinese investment since the pandemic has turned Morocco into a fast-growing auto and battery hub that Brussels now sees as a potential route for subsidized goods into Europe.
EU trade chief Maroš Šefčovič said the buildout reflects Chinese overcapacity being redirected through trade partners, while officials struggle to separate genuine Moroccan production from tariff-circumvention schemes.
The concern is sharpened by existing EU duties of up to 45% on Chinese EVs and a prior ruling that aluminium wheels shipped from Morocco were unfairly subsidized by both Rabat and Beijing.
Chinese groups argue Morocco is a legitimate supply-chain base near Europe, with projects including APG’s $70 million Tangier plant and Gotion’s $1.3 billion Kenitra gigafactory alongside Renault and Stellantis operations.
Morocco says rules of origin, local labor and its trade links make the model lawful, but with €26 billion of Moroccan exports going to the EU in 2025, the dispute could shape Brussels’ wider de-risking policy.
As Europe's carbon tax looms, can Chinese-backed green industry in Morocco truly capture this key export market?
With its flagship solar plant losing millions, how can Morocco's massive new green ambitions prove financially sustainable?
Morocco’s Green Industrial Rise: China’s $6.4 Billion Bet and the New Geopolitics of Global Supply Chains
Overview
Global supply chain disruptions caused by the Middle East conflict and the blockade of the Strait of Hormuz have severely hindered fertilizer supplies, creating shortages for major agricultural producers and highlighting the urgent need for diversified trade routes. In response, China has accelerated its green shift and strategic diversification, seeking stable partners to secure food and resources. This has positioned Morocco, with its vast phosphate reserves and growing green industry, as a key connector in China’s new supply chains. Morocco’s transformation is driven by Chinese investment in green manufacturing, offering both opportunities and challenges for sustainable and inclusive growth.